FTI sounds alarm on levy proposal

The Federation of Thai Industries (FTI) has warned the government that its controversial idea to impose value-added tax (VAT) on businesses earning less than 1.8 million baht a year could lead to more struggles at a time of economic uncertainties.

- LAMONPHET APISITNIRAN

Now is not the right time to ratchet up revenue collection when the country is struggling to deal with economic challenges, said Kriengkrai Thiennukul, chairman of the FTI.

Businesses with revenue of less than 1.8 million baht a year are mostly small and medium-sized enterprises (SMEs), many of which have not fully recovered from the impact of the pandemic, he said.

"Adding VAT will only add a financial burden to SMEs that face strong competition and unpleasant prospects for the global economy," said Mr Kriengkrai.